Over bought? Why try to pick a top? Go with the momentum not against it. Friday's close above the previous contract high of 23.33 is a momentum indicator confirmingthe prevailing direction is still up. There are those who believe that the price of sugar has far exceeded it's fundamental dynamic. A short and concise letter was delivered to the Secretary of Agriculture Thomas Vilsack on August 8 by major U.S. food companies that included Kraft Inc., General Mills Inc., and Hershey Company, warning Washington that the threat of a sever sugar shortage in the United States is real and holds the possibility of distorting trading patterns.

After last months rally through 19.38 monthly resistance prices have held in what appears to be a classic case of solid resistance transformed into newfound support as prices have staged another aggressive advance higher today.

Being that the daily price action is currently in uncharted territory and sugar prices continue to peel through daily and weekly resistance levels a look at the monthly perspective is in order, as it would give us a sense to gauge the markets next point of resistance.

Today's price action in sugar propelled the market to the December 1980 low which represents monthly resistance. Look for prices to bump up against today's high of 24.48 over the next several days' and to consolidate and hold Friday's gains above 23.33 before continuing to carve out new high's for the year.

The fundamentals and technicals are aligned for what could near out to be a historic year for sugar prices. . Call me to discuss possible price objectives on a close above the December 1980 low - todays high of 24.48.